On the basis that you remain & stay in Canada at age 65 & thereafter, let me give you some ballpark numbers based on you or your OH being 65 today

The assumptions are that one of you is 65, the other is between 60-64.

That one of you at age 65 has 20 years residence in Canada qualifies that person for 50% of the OAS. This is approx 50% of ~$570, or $285.

Actual 100% OAS is $573.37/mth per person aged over 65 with 40 years residence in Canada

Since only one of you is 65 at the time of application, you qualify for the 'Allowance as well as GIS

For calculation purposes, some basic numbers with assumptions

Mr Smith at age 65 has an income of $700/mth (from CPP, Foreign pension, investments etc) other than OAS

Mrs Smith (age between 60 - 64) has an income from CPP (which she took early) as well as other income totalling $300/mth.

Combined income $1000/mth, or $12,000/YR

Going to table 4 table of rates for a person receiving 100% OAS ($573.37), while the partner/spouse is between 60-65, the amount of Allowance + GIS that you will receive monthly is $419.93 GIS + $419.93 Allowance = $839.86

Since the senior has only 50% OAS, the extra 50% missed out on is added to the benefits = ~$285

In total

Income for both combined from all sources (excludes OAS) = $1000/mth

OAS for the senior over 65 = ~$285/mth (round numbers)

Allowance + GIS = $839.86

Top up on missed OAS = $285

GST/HST = $44/mth (paid quarterly)

Total income before provincial add-on's = $2453.86/mth

On the basis that you are both 65

Other income from all sources other than OAS = $1000/mth

2 x $573.37/mth (after add on's) OAS = $1140

2 x $227.93/mth = $455.86

GST/HST =$44/mth

Provincial add-on's?

At least $2639/mth Income for two people 65 & over with 20 years Canadian residence, before any provincial add-on's. Would be approximately the same as if you'd both had 40 years residence in Canada

We are just looking into a reverse mortgage for a friend

that be should be interesting, factoring in the set up, admin & closing costs (approx $1500+) with the ongoing interest charges (~5.4%) added to the 'equity release' reverse mortgage amount.

http://retirehappy.ca/the-pros-and-c...erse-mortgage/

Suggestion, if they are going this route - that if they dont need the lump sum up front, that they take monthly releases - that way, there will be more equity in the property left for whatever, such as increasing the release amount year after year

Example: Lets say, a release of $1000/mth today, increasing it to $1100/mth later, then more as required as time goes on. That way, instead of releasing (say) $100,000 in one shot & having to add the interest onto the $100,000, it would be interest on just the small increment amounts released.

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We are only just starting to look into the option. Situation Is his 88 year old wife has had a second stroke and now needs care at $2k per month. He (also 88) does not want to stay in their home without her and is considering a modular home elsewhere on his 36 acre property and selling the section he occupies at the moment. The house has no value as such, it's big and in poor repair. His house is also jam packed full of stuff, stuff that he is stressing about going through, he also pays $200 per week for someone to care for his horses. He is selling bits and bobs and cars off bit by bit. A reverse mortgage will alleviate the stress of packing up a very large home very full of stuff.

As I say very early days in the idea.

piffpoff @ post#109, a difficult situation for sure for your friends

Logic of paying someone $200/wk to take care of horses, when one of them needs care costing $2k/mth

The large property ongoing upkeep & the years of 'stuff'

Do they have children to help them with this crisis?

Makes you wonder if it would be best to have the largest dumpster put on the property, throw most everything out not worth keeping other than personal possessions, sell the farm & horse & have them move into a senior care facility and/or condo

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Nope no children - only extended family is nephew in the UK that they get Christmas cards from and little else. The horses, cats and dogs are their family, he has only needed help with the horses since he fell and fractured his hip this last winter. As for the stuff, a lot of valuable items amongst the no valuable, having lived life on the edge/undercover, there are items that need sensitive destruction and money hidden in random places, so everything needs going through. A project that OH and I will help with this winter I am sure - fascinating people!

PiffPoff @ post #111

Good luck on this one, a big job for sure.

Once the 'real rubbish' has been sorted, I suppose it will all be down to an 'estate auction'?

I've never heard of a reverse mortgage before and still not totally sure what it is

reverse mortgage is the same as the UK's 'equity release'

Simply stay in your home & take a percentage of the equity out tax free.

One is not required to make any payments while staying in their home.

Downside, interest is added to the money that is taken out & that the interest is higher than a conventional mortgage or a secured line of credit

20 years down the road there will be no equity left in the property on the basis a person took out 40% of the initial property value 20 years earlier

Google is your friend on this one

https://www.chip.ca/reverse-mortgage-calculators/


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I have suggested this, it's something he will consider i think eventually. He is trying to sell a couple of things to a museum that already has some bits, we're hoping his jeep will be bought by the museum that has a exhibit. That will alleviate some cash issues.

There were a few posts here about Old Age Security and I can now update some aspects having a definitive answer.

This is primarily of use to those 60 and widowed or everyone 60 and up and who is not expecting to be more than "comfortable" in retirement.

Without getting bogged down with detail this includes already being widowed and then reaching age 60 (not just losing a spouse after your 60th birthday) but will also be relevant at age 65 even if not widowed.

Subject to a couple of other conditions, maximum OAS is payable if you've done 40 years in Canada and you need a minimum of 10 years. It appears that anything between 10 and 40 you get a partial/pro-rata of the maximum, so half if you've done 20 and a quarter if you've done 10.

If you've not done 10 years, time in countries that Canada has reciprocal arrangements with (including the UK) can enable a partial payment.

There doesn't seem to be any specifics about this anywhere but it does not seem that UK time will be added to the Canadian time.

So 30 years in the UK and 10 in Canada won't give you the 40 year maximum OAS. My reading of it is more along the lines of 8 years in Canada won't ordinarily meet the 10 year requirement but if you have done a few years in the UK this may mean that either the 8 years will exceptionally get you 8/40ths or maybe they just treat it as 10/40ths and pay a quarter of the rate. Good luck in establishing what actually happens.

In my case, this year I reach 60 and qualify for the Survivor's (the widower) category of OAS. Depending on when they count from I have done 10 or 12 years in Canada and 32 years of paying into the UK system.

So I was expecting around a quarter. The thing is the maximum is quoted as $570 a month. But my mother in law gets OAS @ $820 so it seems there may be a different maximum if you're widowed.

This is just another example of the lack of information readily available for anything other than basic.

Anyway, I was expecting a quarter of $570 or $820.

But I've now been told officially what it will be - no explanations, or anything just this is what it will be. And it's more than half of even the upper figure.

So there must be some formula regarding your UK contributions that not only enables you to get a partial payment if you have done under 10 years in Canada but that also increases your rate if you've done more than 10.

And it's not taxable.

So is 60 the age that the oas is triggered and paid, is it the qualifying age that determines the number of years you get?

What if you decide to put off receiving it and work until you say 72? My limited experience here in Canada seems to indicate that folk work longer because of the lack of anything to do when retired and the fact that as you get older you become more sick and retiring means you have to pay for the medicines. Byretiring, you are caught between a rock and a hard place where you can't afford the medicines, therefore due to illness, you can't afford to retire...

The qualifying period is 10 years between the age of 18 and 65 so I think they must be assuming you will make this.

The UK Canada Social Security Treaty specifically states that any year you qualify for a pension under NI will not count as a year towards OAS.

As I understand it (and I agree that to a large extent the official information is as clear as mud) time spent in another country counts towards qualification for Canadian pension if it does not qualify you for the other country's pension. E.g. a Canadian lives and works in the UK for 5 years. They pay NI for 5 years in the UK, but as the UK now has a minimum of 10 years NI contributions to qualify for any State Pension the 5 years of NI contributions are lost. In these circumstances the 5 years are added to the person's residence in Canada in determining the amount of OAS they are eligible for.

In our circumstances time spent in the UK prior to moving to Canada does not count as it qualifies us for the UK state pension.

Just in case you are not aware, the tax-free allowance is only paid until you reach 65 when it is replaced by the taxable OAS and the tax-free GIS.

It's 65 but it may be payable if between 60 and 64 if widowed and not remarried.
Literally how many years residence in Canada beyond 18 up to qualifying date.

For me, I have no idea whether at age 65 it becomes 'normal' OAS with the same number of years as now or whether it's recalculated to add another 5 years. Another example of the lack of information.

As with UK RP, it can be higher if deferring the application


Much depends on other income and housing situation but I actually think it's not bad.

If you get CPP and/or other private pension you may still get OAS and you may still get GIS on top.

The absolute minimum is around $1400 (total OAS/GIS) a month if single and my mother in law gets over $1600 (OAS/GIS) and that seems to be because she's widowed.

The existence of the GIS means that in this province your prescriptions are only $9 each. That could be three months worth. I imagine it's similar in other provinces and Shoppers only charges $5 for those seniors anyway.

If you do have another pension, 50c in the $ comes off the GIS so you can actually have something like $1800 minimum and still get the cheap prescriptions.

This is just the bare bones and single/widowed.

Yes. I have been physically present in Canada since 2005 but due to CIC errors, PR wasn't done until 2007.

So I definitely make 10 years this year, when 60 or 12 actual years.

I had a very specific question from Service Canada about the period between 2005 and 2007 and the only logical explanation I can think of is that this would allow them to decide the qualifying period runs from 2005 rather than 2007.

And from the date they have awarded it, they've accepted 2005.

I did 32 years in the UK and have had my pension forecast. I'm only three years short so could in theory pay that but I've not decided yet. That will be due at 66 for me.

But when I first read about this, I did read about the pro-rata aspect. Whether they have counted 10 or 12 the award of OAS they have made bears no resemblance to 10/40ths or 20/40ths

Something has made them pay well over half the maximum as if I had reached over 20 years in Canada already.
I can't think of any reason for this other than taking account of my UK time but not every year of it.

Thanks...I'd forgotten it but it rings a vague bell.